The dealership-owner mortgage, structured around how dealership economics actually work.

W-2 is direct qualifying income. K-1 distributions from S-Corp operating company flow through Form 1084 analysis on the 1120-S — net business income plus add-backs (depreciation, amortization, one-time items) become qualifying income. The combination of W-2 + analyzed K-1 income is the standard methodology for dealer-principals.

Both are non-cash deductions on the 1120-S. Per Fannie Mae Form 1084, depreciation (including Section 179 and bonus) is added back to qualifying income because it's a tax deduction without cash outflow. Critical to handle correctly — dealerships often have substantial Section 179 from facility and equipment investment.

Rental income from the dealership real estate LLC (paid by the operating company to the real estate LLC) flows through the real estate LLC's 1065 return. The K-1 distribution to you personally is qualifying income, analyzed through Schedule E and Form 1084 with appropriate add-backs.

Floor-plan financing is dealership balance sheet debt — not personal debt. It generally doesn't affect your personal DTI. However, personal guarantees on floor-plan facilities may appear on your personal credit and can be evaluated case-by-case. We've structured around personal guarantees on substantial floor plans before.

Possibly — depends on timing and structure. Pending acquisitions affect personal balance sheet (down payment, holding deposits) and future income picture. We work backward from the actual acquisition timeline and structure mortgage qualifying around your real position rather than projected. Often we'll wait to close on the personal residence until the dealership acquisition is finalized.

Common scenario. Three paths: (1) restructure comp going forward (longer-term solution — talk to your CPA), (2) use a bank statement or P&L loan that bypasses tax-return optimization, or (3) layer asset depletion if you have liquid wealth. Most often we use option 2 or 3 to close the immediate transaction while you decide on tax-strategy adjustments.

All of these flow into the operating company's revenue line and ultimately to your K-1 distribution. They're already captured in the 1120-S analysis through Form 1084. For multi-rooftop dealers with significant stair-step incentive income, we may break out these items to demonstrate the income stability.

Industry-wide disruptions (2021–2023 chip shortage, OEM allocation issues, supply chain) are well-documented and can be addressed in the file. We can use either pre-disruption baseline income (if recent) or the 24-month average that includes the disruption. Underwriters generally recognize industry-level events when documented.

Yes — rental income from the departing residence counts under Fannie Mae rental income rules (Form 1007 or Schedule E), typically at 75% of gross rent. Critical to document the executed lease before closing the new purchase. Particularly common for relocating dealer-principals expanding into new markets.

Not directly — closely-held business equity isn't a liquid asset. But the equity value supports asset depletion qualifying when it's combined with liquid investments. Some lenders also recognize closely-held business value at a discount (typically 50–70%) for net worth purposes, which affects reserve requirements.

Jumbo: 700+ minimum, 740+ for best rates. Super-jumbo: 740+ minimum. Multi-rooftop file with strong income often qualifies at 700+ with appropriate documentation. Most established dealer-principals have 760+ scores given long credit history and disciplined personal financial management.

Active personal guarantees on commercial debt (floor plan, real estate construction, working capital lines) are disclosed in the file. Most underwriters don't include guarantees in your personal DTI calculation as long as the underlying business is performing — but they want documentation. We work with your CFO/CPA to compile what the lender needs.

Honest answer: depends on timing. A sale-in-progress creates uncertainty around future personal income. If sale is 6+ months away with a clear post-sale income plan (real estate LLC continuing, family office, new investment activity), we can usually structure qualifying around the post-sale picture. If sale is imminent, we may want to wait or use asset depletion exclusively.

Last 2 years personal tax returns (1040), last 2 years operating company returns (1120-S), last 2 years real estate LLC returns (1065), all K-1 schedules, last 2 years W-2 if applicable, recent dealership financial statements (income statement, balance sheet), recent personal bank and brokerage statements, and a list of major active personal guarantees on dealership debt.

Yes — we routinely work directly with dealership CFOs, controllers, and outside CPAs. We can structure the entire process working through your finance team, with you involved only at decision points. This is the typical workflow for multi-rooftop and larger files.

Purchase: 45–60 days typical for dealer-principal jumbo files (longer than W-2 files due to multi-entity income analysis). Refinance: 35–50 days. Multi-rooftop platforms with 5+ entities may take an extra 7–10 days. We give realistic timelines aligned with month-end and quarter-end dealership reporting cycles.

For net worth purposes, yes — retained earnings in your S-Corp are your equity. For liquid asset purposes (down payment, reserves), retained earnings need to be distributed to you personally first or you need to use other liquid assets. We work backward from what the lender's reserve requirement actually demands.

Slightly. Independent used-car operations have no OEM holdback or factory income — but typically higher per-unit gross. Income picture is still S-Corp / 1120-S analyzed through Form 1084. The methodology is the same; the underlying composition differs.

BHPH receivables are a distinct asset class with industry-specific valuation conventions. Reserves and collection-rate assumptions affect the effective value. For mortgage qualifying, the receivable income flows through the finance company's returns; the receivable asset is a closely-held business asset that doesn't directly support reserve requirements but supports net worth.

Yes, in many programs. Title held in a revocable trust is common and well-accepted. Mortgage may be in personal name with trust vesting at closing, or in some programs the loan itself can be trust-vested. We coordinate with your attorney and trust documents.

Yes — asset depletion qualifying using sale proceeds is the standard path for recently-sold dealer-principals. We can also use 24-month historical income from the sold operation if recent enough. Many post-sale dealers also have a continuing real estate LLC or new investment activity that adds documentable income.

Standard second-home loan programs apply — owner-occupancy rules differ from primary residence (typically 14+ days per year personal use, not rented full-time). Dealer-principals are common second-home buyers; we structure financing aligned with primary-residence and dealership-real-estate engagements.

State residency changes affect tax filing and licensing for some loans. From a mortgage perspective, we structure financing for the new-state primary residence and coordinate with your prior-state residence sale or rental. Common scenario for dealer-principals moving to FL or TX for tax efficiency while keeping dealership ownership in the prior state.

NEXA Mortgage LLC is licensed in 48 states. Specific licensed-state list available on request. We work with dealer-principals nationally — particular depth in dealership-dense markets: Florida, Texas, California, Tennessee, North Carolina, Georgia, Arizona, and the Midwest manufacturing belt.

Discovery call is the right first step for dealer-principal files — your situation is complex enough that a quick form won't capture the right qualifying path. Bring your CFO or CPA. NMLS #1072866 — direct contact, full discretion, no callcenter handoffs.